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Fiscal

Siemens at a glance

siemens.com


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We make real what matters by settingthe benchmark in the way we electrify,automate and digitalize the worldaround us.

To learn more, please read on.

Company Report


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Contents: Company Report

Powergeneration

Flexible and small gas turbines will be an impor-

tant growth field in the years ahead. Find outhow our SGT- in Lubmin, Germany, is helpingsecure Europe’s power supply.

Page

OurpathVision describes our path to a successfulfuture – a strong mission, a lived ownership

culture shared by all our people and a consis-tent strategy.

Page

Power transmission,power distribution andsmart grid

A capacity of gigawatts and more than, kilometers of high-voltage trans-mission lines – these are only two features of

a power grid of true superlatives. Learn howwe’ve cooperated with local partners in Brazilto create one of the world’s most advanced,safest and most reliable power grids.

Page


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OurstrategyOur strategy defines the direction our Companyis taking, sets the focus for our business activitiesand determines our entrepreneurial priorities.

Page

Energyapplication

Our intelligent software solutions are settingnew standards – for example, in Qatar, where

a new elevated conveyor system for the Hamad

International Airport in Doha was planned com-pletely digitally and commissioned well beforethe airport itself was opened.

Page

Imaging andin-vitro diagnostics

Rush University Medical Center in Chicagodemonstrates how we’re helping hospitaloperators and clinicians worldwide offer thebest possible healthcare at affordable prices.

Page

OurcultureAt Siemens, we live and nurture an ownership

culture – because, by giving his or her best,each individual makes a vital contribution to

our Company’s overall success.

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For over years, Siemens has stood for

engineering excellence and innovation, forquality and reliability, for human creativityand drive, for stability and financial solidityand, last but not least, for good corporatecitizenship. Our Vision fully embracesthis legacy while moving us forward intoa successful future.


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Our path

Making real what matters


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WHAT do we stand for?

WHAT sets us apart?

HOW can we achieve

long-term success?

Joe Kaeser

President and CEOof Siemens AG

Our path


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Vision 2020

Dear Readers,

If you want to gear a company to the future, you’ve got to

provide answers to the following questions: What do you

stand for? What sets you apart? How will you achieve long-

term success? And that’s what we’ve done. Vision 2020

is paving the way to a successful future. And to make it

happen, we’re focusing on three topics:

1. A clear mission A mission expresses a company’s self-understanding and

defines its aspirations. “We make real what matters.” That’s

our aspiration. That’s what we stand for. That’s what sets

us apart. A reflection of our strong brand, it’s the mission

that inspires us to succeed.

2. A lived ownership cultureOne engine of sustainable business is our ownership culture,

in which every employee takes personal responsibility for

our Company’s success. “Always act as if it were your own

Company” – this maxim applies to everyone at Siemens, from

Managing Board member to trainee.

3. A consistent strategy With our positioning along the electrification value chain,

we have knowhow that extends from power generation to

power transmission, power distribution and smart grid to

the efficient application of electrical energy. And with our

outstanding strengths in automation, we’re well equipped

for the future and the age of digitalization. Vision 2020

Our path


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defines an entrepreneurial concept that will enable our

Company to consistently occupy attractive growth fields,

sustainably strengthen our core business and outpace

our competitors in efficiency and performance. It’s ourpath to long-term success. And we’re measuring our

progress: seven overarching goals support this aim.

SEE PAGE

We’ll be working on the three areas outlined above. They

describe the key factors that are enabling us to lead

Siemens into a successful future. Throughout this process,

we will gear all our actions to the requirements of our

customers, our owners and our employees as well as to thevalues of society. I personally intend to ensure that the

next generation will inherit a better Company. That’s my

vision. That’s my responsibility. That’s my promise.

Joe Kaeser

President and CEO of Siemens AG

Vision 2020

We make real what matters

Our path


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by setting the benchmark

in the way we

electrify, automate and digitalize

the world around us.Ingenuity drives us

and what we create is yours.

Together we deliver.

Mission


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Shaped by our history, culture and values, our mission defineshow we understand ourselves. As an expression of a strong brand,it formulates our aspiration.

This is the foundation on which we’ve been tackling the challengesof our time ever since Werner von Siemens and Johann Georg Halskefounded our Company in Berlin more than years ago.


Grounded in reality, we’re inspired by the desire to shape the future – in cooperationwith our partners. Leveraging our passion for engineering, we make real whatmatters, working with our customers to help improve the lives of people today andin the generations to come. Customers all around the world trust us and count onour knowhow and our reliability to make them more competitive.

By setting the benchmark

We empower our customers to set benchmarks – with our power of innovation,our leading technologies, our global presence and, last but not least, our financialsolidity. We generate value by transforming the value chain of electrification,reaching across both the digital and physical worlds. Our highly qualified and

committed employees are the foundation for achieving this.

Together we deliver

Our knowledge is the basis of our performance. We partner with our customers,leveraging sustainable business practices. With determination and ingenuity, wedeliver engineering excellence, taking personal ownership until we jointly succeed.

Our path


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Positioning

How can we achieve long-term success? And how are we positioningourselves to make it happen? Our setup is aligned with frameworkconditions worldwide, with the long-term trends that define our markets,with our competitive environment and with the requirements of

customers, partners and societies. Focused on the long term, it standsfor what all our business activities have in common.

Electrification

We’re positioned along the value chain of electrification. Our products aredesigned to generate, transmit, distribute and utilize electrical energy withparticularly high efficiency. Our roots are in electrification. We’ve been lead-ers in this field until now, and it’s here that our future lies.

Automation

We’ve been successfully automating customer processes for years. In auto-mation, too, we’ve already captured leading market positions worldwide.

We intend to maintain and expand these positions.

Digitalization

We want to exploit the opportunities offered by digitalization even better.Because added value for our customers lies more and more in softwaresolutions and intelligent data analysis.

Across the areas of electrification, automation and digitalization, thereare concrete growth fields – fields in which we see major potential. We’re

rigorously aligning ourselves to exploit this potential in order to achievelong-term success. Our setup reflects this aspiration.

SEE PAGE

Our path


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Digitalization

Automation

Electrification


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Stages

Our positioning and our strategic direction are closely linked to definedmilestones – the stages in which we’ll lead our Company into a successfulfuture. We’re not only focusing on the next one or two quarters or thenext reporting season but on the years and, perhaps, even decades to come.With this future in view, we now have to take all the right steps to createvalue – for the short, medium and long term.

Short term: Drive performance

Our first task is to boost our performance. To achieve this aim, we’re retai-loring our structures and responsibilities. We’re also focusing on businessexcellence, in other words, the reliable management of our businesses.We want to get even those businesses that aren’t reaching their full potentialback on a successful track and make them competitive again.

Medium term: Strengthen core

To achieve long-term success, you have to focus on the things that make you

strong and put other things aside. In line with this philosophy, we intend tostrengthen our successful businesses along the value chain of electrification.Among other things, we want to allocate resources in a more rigorous wayin order to expand in strategic growth fields. SEE PAGE

Long term: Scale up

But we won’t stop there. With the same resolve, we’ll intensify our efforts toseize further growth opportunities and tap new fields.

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V a l u e

20 15 20 16 20 1 7 20 18 20 19 2020

S cal e up

Str engt hen cor e

D riv e pe rfor ma nce

Vision 2020

Stages

Our path


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Goals

Only those who set demanding goals can be successful over the long term.That’s why we’ve linked the success of Vision 2020 to the attainment ofseven overarching goals – goals that will provide us with a yardstick and acompass on the path to 2020. In particular, we aim to:

Execute financial target system

We’re rigorously implementing our f inancial targetsystem in order to consistently achieve our capitalefficiency target – an ROCE of 15% to 20%. Our aim isto grow faster than our most relevant competitors.

Implement stringent corporate governance

We’re simplifying and accelerating our processes whilereducing complexity in our Company and strengtheningour corporate governance functions. In this way, we planto reduce our costs by roughly €1 billion. The savings areexpected to be mainly effective in .

Create value sustainably

We’re tapping attractive growth fields and gettingthose businesses that haven’t yet reached their fullpotential back on track.

Goal:Tap growth fields and

get underperformingbusinesses back on track

Goal:ROCE of

15%to

~

Goal:Cut costs by

€1billion

Goal:Growth

most relevantcompetitors

20%

Our path


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Expand global management

We want more than 30% of our Division and BusinessUnit managers to be based outside Germany by 2020.

We now have business activities in virtually every

country of the world, generating some 85% of ourrevenue outside Germany. We want our managementto reflect this global orientation more strongly inthe future.

Be a partner of choice for our customers We want to be our customers’ partner of choice – bothnow and in the future. To measure customer satisfac-tion, we use the Net Promoter Score – a comprehensivecustomer satisfaction survey that we conduct every

year. Our goal is to improve our score in the survey byat least 20%.

Be an employer of choice

Highly committed and satisfied employees are the basis

of our success. We are – and want to remain – anattractive employer. That’s why we conduct a globalengagement survey to measure employee satisfaction.In the categories Leadership and Diversity, weaim to achieve an approval rating of over 75% ona sustainable basis.

Goal:

30%of Division andBusiness Unit managementoutside Germany

>

Goal:

75%approval rating in thecategories Leadershipand Diversity in our global

engagement survey

>

≥

Foster an ownership culture

In the future, our employees will have an even greaterstake in their Company’s success. We want to increasethe current number of employee shareholders by atleast 50%.

Goal:

20%improvement in

Net Promoter Score

Goal:

≥50%increase in thenumber of employeeshareholders

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Strategic framework

To be successful, a company needs more than concrete financial targets.

It also requires a comprehensive strategic framework that closely aligns

the central fields of company management. Vision 2020 defines this frame-

work for Siemens.

Ownership culture

The most important guarantee for the long-term success of our strategyis a strong culture. It’s the origin and foundation for all our consider-ations. We want to reflect the basic values of responsible action withina strong ownership culture – throughout the entire Company.

SEE PAGE

Customer and business focus

We’re sharpening our customer and business focus through rigorouspositioning and clear priorities for stringent resource allocation. Forthis reason, we’re concentrating our efforts on selected growth fields.

SEE PAGE

Governance

We’re also strengthening our internal setup by streamlining our Companystructure and making our management even more effective – in a word,we’re ensuring strong governance. SEE PAGE

Management model

Last but not least, we’re further expanding the original One Siemensfinancial concept to make it a comprehensive management model

encompassing our financial targets, our operating system and ourunderlying approach to sustainability. SEE PAGE

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C u s t o m e r a n d b u s i n e s s f o c u s

M a n a g e m e n t m o d e l

O w n e r s h i p c u l t u r e

G o v e r n a n c e

Strategic framework

S i e m e n s

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Power generation Power transmission, power distribution and smart grid Energy application Imaging and in-vitro diagnostics

More IQ per megawatt –Generating power moreefficiently

Efficient power generation requires intelligent solutions like those

offered by our SGT- gas turbine. With a capacity of megawatts,the SGT- is one of our smaller gas turbines – but its capabilities areenormous. On the Baltic Sea in Lubmin, Germany, exhaust heat fromthe turbine is used to heat natural gas arriving on site through the

Nord Stream pipeline, thus keeping the gas transportable. In addition,the electricity generated by the turbine is fed into the public grid. Thistwo-fold benefit is further enhanced by the turbine’s high efficiency and

low emissions, which make the SGT- one of the most ecofriendlyturbines in its class.

+ %Experts expect global demandfor electricity to increase signi-ficantly by .

×The demand for electricityis growing twice as fastas the global population.


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Power generation

Less is more To boost efficiency, you have to eliminate

unnecessary losses. Intelligent solutions can cut these to a

minimum, enabling the Siemens SGT- gas turbine to

achieve a mechanical efficiency of more than %. This

requires farsighted planning early on. That’s why our engi-

neers leveraged the advantages of digitalization already

during the design phase. Using multi-layered D models,

they simulated and planned future maintenance work while

still working on first drafts of the new turbines.

“Already during thedesign phase, we placedgreat importance on

the turbine’s future easeof service as well as itsefficiency.”

Anders Hellberg,

Siemens sales manager,

product manager and

development engineer


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True greatness lies in the details Efficiency, cost effec-

tiveness and reliability are the three main requirements for

gas turbines. Improvements to details make it possible to

constantly push the limits of what is feasible. A prime

example is our Dry Low Emissions combustion system, which

optimizes fuel use and minimizes harmful NOx emissions.

With its advanced materials and precision processing, our

SGT- is deployable worldwide under all possible climatic

conditions – in the desert as well as in the Arctic, on the high

seas as well as on land.

barHigh compressor pressure enhancesefficiency and cuts emissions.

%Fuel efficiency of up to % canbe achieved with combined heatand power (CHP) systems.


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Power generation

Energy supply security according to plan Ensuring

the continued successful provision of energy in the future

will require sophisticated energy management. To get a grip

on rising energy costs, power generation must become more

efficient. Our online monitoring system performs tasks such

as controlling the capacity utilization of systems and continu-

ously monitoring sensitive components – enabling potential

errors to be detected and resolved at an early stage. The

advantage: the turbine can operate at full load for nearly eight

years, or , hours, before it has to be comprehensively

overhauled. With rigorous monitoring, this service interval

can be extended even further. That’s what we call energy

supply security according to plan.


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Maintenance with minimum downtimes Downtime

is costly and impairs processes. To minimize it, we designed

the SGT-. Our aim was to ensure that the new turbine

would have the least downtime in its class. And our engi-

neers have kept their word: the SGT- has just scheduled

maintenance days over a period of years. That’s the stand-

ard we’ve set – a benchmark made possible by a design that

offers ease of service and ready access to all important parts.

In addition, high-quality materials and components minimize

the likelihood of failures.

/Only maintenancedays are scheduled overa period of years –a clear promise.

,The gas turbine can operateat full load for , hoursbefore it’s due for its firstcomprehensive overhaul.


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Power generation

How the SGT- is helping safeguard Europe’s gas

supplies Along its route from Siberia’s large natural gas

reserves, the Nord Stream pipeline transports natural gas

through the cold Baltic Sea. Not only does the temperature of

the gas drop during transport, but the pressure also falls – from

about bar at the Russian city of Portovaya to a maximum

of bar in Lubmin, Germany – resulting in a challenging

situation. On the one hand, the pressure is still not low enough

for further transport, for which bar is required. On the

other hand, the gas has already cooled down to such an extent

that a further reduction in pressure could cause the pipelines

to become iced. That’s where our SGT- gas turbine comes

in, helping ensure the smooth provision of gas to Europe with

its exhaust heat. The fact that the power generated by the

turbine is fed into the grid and can supply up to , house-

holds with electricity rounds off this success story.


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Combating ice with °C The Joule-Thomson effect

describes the phenomenon whereby natural gas in pipelines

cools when the pressure is reduced. At temperatures near the

freezing point, a great deal of energy is needed to heat the

gas in order to prevent icing. In the past, gas-fired boiler

plants with a heat output of megawatts each were used

for this purpose. The SGT- offers technology that is both

more efficient and more ecofriendly: exhaust heat produced

during power generation is ideal for heating the natural gas.

Reaching temperatures as high as °C, the exhaust airflow

supplies enough energy to heat the gas at the pipeline’s

landfall facility in Lubmin, even during the cold winter

months – thus enabling the gas to be further transported.


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http://www.siemens.com/sgt-750


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SGT - | F inspång, Sw eden T he SGT - sees t he light of da y : in Nov ember , t he benef it s of our SGT - gas t ur bines

w er e pr esent ed t o t he gener al public f or t he v er y f ir st t ime in F inspång, Sw eden.

SGT - | L ubmin, Ger man y Doubl y ef f ic ient : in Lubmin, our SGT - f eeds elec t r ic it y int o t he loc al pow er

gr id and saf eguar ds Eur ope’ s gas suppl y w it h it s ex haust heat .

SGT - | Alt amir a, Mex ic oT ex t ile pr oduc t ion using on-sit e pow er gener at ion: in Mex ic o, our SGT - is suppl y ing pow er

t o t he f ac t or ies of a t ex t ile manuf ac t ur er – one ex ample of a dec ent r alized pow er suppl y .


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Power transmission, power distribution and smart grid

Everything undercontrol – Thanks toreliable power grids

Brazil’s social and economic structure has been transformed in the past

few years, strengthening the country’s domestic market and increasing the

supply of and demand for goods and services. To prevent power blackouts,

which can take a heavy toll on a nation’s infrastructure and hamper itseconomic development, Brazil’s booming market requires a robust power

grid. By implementing a centrally managed smart grid solution, Siemensand its partners are helping make the country’s power grid more reliable,flexible and efficient. The solution, which is enabling Brazil to close thegap to the leaders in infrastructure technology, has placed the nation in the

vanguard of a development that is set to spread to many other countriesaround the world in the years ahead.

million km²Two-thirds of Brazil iscovered by the power grid.


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> gigawattsTotal grid capacity

%The grid supplies nearly allthe country’s electricity.


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Reliable power is a prerequisite for growth Brazil’s

power grid is a system of superlatives. Its more than ,

kilometers of high-voltage lines can transport over giga-

watts of electricity – compared to around gigawatts at the

turn of the century. In addition, around % of the country ’s

electricity comes from renewable energy sources, mainly

from hydropower plants. Monitoring this huge and complex

system is the role of ONS, Brazil’s national grid operator. As

part of a strategic plan, ONS invested in a unique solution to

increase the reliability and flexibility of the power grid and

avoid the risk of blackouts and faults.


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A grid built on experience In , a consortium com-

prising Siemens and CEPEL, the research branch of the

Eletrobras Group, was selected by ONS to develop a state-of-

the-art energy management system. Known as REGER, the

system is now monitoring and controlling Brazil’s power

grid. Leveraging its wide-ranging experience in installing

similar systems worldwide, Siemens cooperated with CEPEL

to develop an intelligent power transmission solution or

“smart grid.” Monitoring and controlling power transmission

in real time, the grid adapts more effectively to variations

in demand and makes more intelligent use of available

resources. REGER has been a major success, as represen-

tatives of ONS, CEPEL and Siemens can confirm: Carlos

Adolfo de Souza Pereira of Siemens, Albert Melo of CEPEL,

Guilherme Vieira de Mendonça of Siemens and Hermes Chipp

of ONS (from left to right).

“ The combined expertise ofCEPEL and Siemens, plus themutual trust and respectamong all partners, were keyto the project’s major success.”

Albert Melo,General Director of CEPEL

“Our new system places thecountry in the global van-guard of energy management

technology – thanks tothe close cooperation andoutstanding competenceof Siemens, CEPEL and ONS.”

Hermes Chipp,General Director of ONS


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Monitoring the Brazilian grid One of Brazil’s four

regional control centers is located in Rio de Janeiro. Respon-

sible for the southeast region, the center monitors data points

from the country’s most developed area – which accounts

for around % of Brazil’s energy consumption. Monitoring

and control systems support all the grid’s operating functions.

And if one regional control center becomes very busy, another

can always back it up. The new energy management system

utilizes available resources better than the heterogeneous

grid monitoring system that preceded it – thereby reducing

operating costs and making Brazil’s energy system more

reliable, more flexible and more efficient.


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Adaptability is a matter of intelligence Brazil’s grid

operators face a huge challenge: ensuring the reliable and

economical transport of energy over great distances from

many different parts of the country. Roughly % of Brazil’s

electricity is currently generated by hydropower plants, of

which there are now more than , in the country. To meet

the nation’s growing energy requirements, the government

is planning to build up to additional hydropower plants

by . Since rainfall volumes are not always constant,

however, the amount of electricity supplied by hydropower

is subject to natural fluctuations. Declines must be compen-

sated for in real time. Grid operators also have to plan for

foreseeable demand peaks – at midday, for example, when

large numbers of air conditioners are switched on – and

make additional power plant capacity available as quickly

as possible.


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Always up-to-date Brazil’s power grid covers around five

million square kilometers or about two-thirds of the country

and supplies % of the nation’s electricity requirements.

Developed by Siemens and CEPEL, the proven hardware and

software that control and monitor the grid combine high

performance with outstanding reliability while minimizing

maintenance. To safeguard the grid’s long-term performance,

Siemens and CEPEL have pledged to keep the hardware and

software up-to-date, which is made easier thanks to the use

of evergreen technology. Their ongoing partnership ensures

that Brazil’s smart grid will always operate reliably through-

out its entire lifecycle.


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Generating value with innovative solutions Brazil’s

smart grid has already convincingly demonstrated its value:

the resources available to the grid are now being used more

flexibly and efficiently. REGER situational awareness tools

are reducing the risk of blackouts – an important advantage

not only for car manufacturers. However, if outages do occur,

the causes can be identified, impacts minimized and power

restored much faster than ever before. And smart grids hold

even more potential for the future. They’re a prerequisite for

making power grids more intelligent and thus simplifying

the management and control of tomorrow’s energy flows.


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The amount of power being consumed and

generated worldwide is continually increas-ing. The share of electricity in the energy mixis on the rise, as is the percentage of powerbeing produced from renewable, decentral-

ized sources. The greatly fluctuating feed-infrom renewables is a further burden for gridsthat are already overloaded. Leveragingits worldwide experience in designing and

operating grids, Siemens develops intelligentsolutions that better integrate power gridsunder such conditions and make them smarter.

An IT revolution has begun in the area ofpower grids: information and communica-tion technologies are boosting security ofsupply and enhancing the efficiency of grid

infrastructure operations. At the same time,grid control software and company softwareare becoming increasingly integrated,opening up new business models for utili-ties. Siemens offers the energy industry a

complete range of products, solutions andservices from a single source – from gridprotection, automation, planning, control,monitoring and diagnostics systems to

products and turnkey solutions.

Smart grids are being implemented or planned world-wide as an energy-efficient, ecofriendly solution for thereliable supply of power. This complex undertakingrequires new strategies and partnerships, innovativetechnologies and tailor-made solutions. As one of theworld’s largest providers in the industry, Siemens offers

a comprehensive portfolio of products, solutions andservices that support energy producers, grid operatorsand power utilities.

A smart grid for BrazilThe transformation of Brazil’s power system into a smart grid has been driven

primarily by a consortium comprising Brazil’s Electrical Energy Research Center

(CEPEL) and Siemens. Our Company was selected as a partner for the project on

the basis of its virtually unparalleled experience in designing and implementing

smart grid applications worldwide.

Initial planning for the new system in Brazil began in . In , the country ’s

national grid operator, ONS, commissioned the project. Known as REGER, the

system integrates five energy management systems as well as four regional oper-

ating centers into a nationwide power grid.

REGER is one of the safest, most advanced and most reliable systems implemented

to date. Brazil has thus closed the gap to the world’s leading industrialized nations

and paved the way for the ongoing growth of its economy and infrastructure.

Intelligent grids: the key to saving electricityThe development of intelligent grids is one of the key challenges of the future

for the global energy industry. For the first time, the unilateral flow of energy is

being transformed into a multidimensional exchange of energy and information.

Intelligent and networked energy systems are complex – not only in design, but

also in operation. But there’s also a payoff: the systems offer far more than just

a failsafe power supply. Advanced Smart Metering solutions make it possible,

for example, to balance generation and consumption more closely while manag-

ing – and not merely reacting to – the demand for power. They also enable grid

operators to provide pricing incentives to customers who save electricity during

periods of high demand or shift their consumption to off-peak periods. The advan-

tages – flattened demand peaks and improved customer behavior – enhance

energy efficiency, particularly for decentralized power plants and large-scale

consumers, while ultimately making a further active contribution to environmen-

tal protection by increasing the share of renewables.


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A culture can’t be dictated or imposed:a culture must be lived. All around the world,

we want to foster a culture that appealsto the commitment, creative drive andentrepreneurial spirit of every individual –in short, an ownership culture.


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Our culture

Acting entrepreneurially


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Culture makes the difference

Even the best strategy can’t succeed unless it’s supported bya strong culture. That’s why we at Siemens live and foster anownership culture – a culture that encourages every indi-vidual in our Company to give his or her best in his or her

position in order to help build Siemens’ long-term success.

We’ve asked employees to explain what they understand byan ownership culture. You’ll meet some of them on the pagesthat follow.

Our culture


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Always act as if it were your own Company.

Joe Kaeser


Our culture


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It is genuinely demonstrating commitment and responsibility

to do my best and what is best for the Company.

Lena Ikejiri de Medeiros

Human Resources Manager

Our culture


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Mariel von Schumann

Head of Governance & Markets

Our culture


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Rickard Olsson

Workshop Test Manager

Together with my team, I work hard and with dedication to ease the

workload for the colleagues who take over where we’ve left off.

Our culture


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Janina Kugel

Chief Diversity OfficerHead of HR People & Leadership

Our culture


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Ownership culture is an asset as well as

a prerequisite for our global success.

Georgia Davari

ApprenticeEuropeans@Siemens

Our culture


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Hamad Al Khayyat

General ManagerOil & Gas

For me, ownership culture is having both feet on the ground,For me, ownership culture is having both feet on the ground,

knowing the local context like the back of my hand and creatingknowing the local context like the back of my hand and creating

a culture for the people around me that will motivate thema culture for the people around me that will motivate them

to do their best.to do their best.

Our culture


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Ownership culture

It’s not just strategy that makes the difference; it’s alsoa company’s culture, its values and what it stands for.

Our culture

Leadership

Behaviors

Peopleorientation

Values

Ownershipculture

Equity

Our culture


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Siemens is a company that was led for generations by owners whohad a passionate interest in the firm’s long-term successful develop-ment. They all knew that every individual makes a contributionevery day to the Company’s enduring success. We’re following thisconviction and want to foster an ownership culture worldwide thatincludes all of our people. We believe the following principles areespecially important here:

Owners ensure our business success

Our managers should serve as role models for the Company’s strategic directionand ensure the sustainable and efficient use of available resources – thus inspiringand empowering their teams to give their best for the Company.

Our behaviors bring the ownership culture to life

Entrepreneurial behavior should be the standard and foundation for how we actat Siemens. This applies to each individual in the Company – since only then can

behaviors constantly evolve and improve.

Owners care for each individual

We strive for a people-oriented approach that values and clearly fosters diversityof experience and expertise. If this is reflected in all that we do, we’ll improve theperformance of our Company.

Ownership culture is based on our Company values

If everyone in the Company acts responsibly, achieves excellent results and isinnovative, they will personally contribute to the sustainable success of Siemens.Responsible, excellent, innovative – these values are the foundation of ourownership culture.

Owners identify themselves fully with Siemens

We strongly believe that employee shareholders act responsibly and are oriented tothe long term when they directly participate in their Company’s success. That’s whythe equity culture is an integral part of our ownership culture. SEE PAGE

Our culture


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Be a role model and follow safe routines for a safer future.

Jesper Rönnbäck

Electrician

Our culture


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Ownership culture is being self-motivated by continuous

improvement for sustainable success, whatever your position is.

Juliana Furlanetto Odoni

Sales Support Manager

Our culture


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Devina Pasta

Corporate Strategies

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Michael Cheng

Senior ManagerEngineering for Angiography

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Elena Rubio López

ApprenticeEuropeans@Siemens

Creating a good working environment,

trusting and respecting one another –that’s what ownership culture means to me.

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Ownership culture is exercising a sense of belonging, taking the

responsibility for doing your best, unconditionally, every day.

Sergio SouzaProgram Manager

Transformation ProgramSiemens Brazil

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Mariel von Schumann

Munich, Germany

IMariel von Schumann joined Siemens in . After servingthe Company in various capacities, she was appointed head ofGovernance & Markets in November . In her current func-tion, she combines internal management of governance topicswith the external view from the capital market. This includes,for instance, communicating with the shareholder community,coordinating remuneration of Siemens’ Managing Board and

top executives, and managing the Company’s organizationalstructure and internal equity programs. In addition, she orches-trates our initiative for fostering an ownership culture atSiemens, one of the main building blocks of our Vision .She’s eager to be a role model in that respect – living thisownership culture drives her actions.

Lena Ikejiri de Medeiros

São Paulo, Brazil

IAfter graduating with a degree in business administration andspecializing in HR, Lena Ikejiri de Medeiros joined Siemens in

as an intern and has worked in human resources with passion eversince. Lena’s core competencies are employee and leadership develop-ment, succession planning and learning – the areas for which she’scurrently responsible at Siemens Brazil. Drawing on two cultural her-itages, Brazilian and Japanese, Lena lives both cultures’ values withgreat enthusiasm. She’s further enhanced her intercultural capabilitiesby working in a variety of Latin American countries.

Rickard Olsson

Finspång, Sweden

IRickard Olsson is a workshop test manager at our Siemens

Industrial Turbomachinery AB site in Finspång, a town in theSwedish province of Östergötland. Once famous for its cannonproduction, the locality now pursues peaceful activities, build-ing the most modern and efficient gas turbine in its class.

Rickard looks back on many years of experience in this field.

He started his career as a trainee, followed by on-site assembly

and commissioning work. Before assuming his current duties,he held various positions in a transfer project in the MiddleEast and worked as a warranty engineer in Europe.

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Georgia Davari | Elena Rubio López

Berlin, Germany

IIn many EU countries, one out of every two young peoplehas neither a job nor a vocational trainee position. Through

the Europeans@Siemens initiative, we’re helping improvethis situation by giving young people the chance to com-plete a dual education-and-training program in Germany.Since , young Europeans from EU membercountries have been selected by their respective SiemensRegional Companies and sent to Berlin. Among them areGeorgia Davari and Elena López, who entered the programon August , . Whereas -year-old Georgia hadalready earned a college degree in automation engineer-ing in her home country of Greece, -year-old Elena leftSpain after attaining the “Bachillerato,” which is a collegeentrance qualification. In the coming years, in alternatingphases of theoretical instruction and hands-on practice,these two women will learn the occupation of electronics

technician. After that, they intend to take the knowledgeand skills acquired in the program back to their home coun-tries. But first, they need to become proficient in German,the language in which the final examination is conducted.

Janina Kugel

Munich, Germany

I

Janina Kugel is responsible for strategic personnel topics and executivedevelopment at Siemens. After studying at universities in Mainz andVerona, she began work as a management consultant in . Since joining Siemens in , she’s been involved in the Company’s develop-ment in various capacities. From to , Janina headed the globalHR organization at OSRAM and prepared the business for the IPO thatwas completed in July . Since , she’s been Chief Diversity Officerat Siemens AG.

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Juliana Furlanetto Odoni

São Paulo, BrazilI Juliana Furlanetto Odoni holds a bachelor’s degree in environmentalengineering and a master’s degree in business management. The-year-old Brazilian first came to Siemens in as an intern in cor-porate quality management before joining a trainee program in .Since , she’s been working as a sales support manager. Alwaysmotivated to improve processes, Juliana has participated in severalprojects and programs focused on making Siemens Brazil a benchmarkin leadership, productivity and customer satisfaction. Very committedto sustainability issues, she’s also been serving as an environmentaleducation volunteer and panelist.

Jesper Rönnbäck

Finspång, Sweden

I Jesper Rönnbäck plays a key role in keeping productionrunning smoothly at our gas turbine plant in the Swedishtown of Finspång. Starting out as a technical assistantand moving up to the position of foreman in , Jesper is

responsible for all the plant’s electrical installation work,

including the connecting up of the SGT-, one of ourlatest gas turbines. A smaller gas turbine in the Siemensportfolio, the SGT- is capable of generating mega-watts of power. Its outstanding features include versatility,high efficiency and low emissions – all of which make it oneof the most environmentally friendly turbines in its class.

Hamad Al Khayyat

General Manager Oil & Gas, Qatar

IHamad Al Khayyat joined Siemens WLL Qatar in December as General Manager of the company’s oil and gas businessin the Gulf state. As a highly respected expert in Qatar’s oil, gas

and petrochemicals industry, Hamad boasts vast experiencein strategic planning and in fostering business relationships withother organizations and the representatives of governmentaland non-governmental institutions. As a large number of projectsimpressively attest, he’s helped strengthen Siemens’ successful,trust-based partnership with the nation of Qatar.

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Sergio Souza

São Paulo, Brazil

ISergio Souza joined Siemens in as a field service technicianin the area of telecommunications. Since then, he’s held a widerange of positions in Brazil and other countries. Since August, Sergio has headed the Transformation Program, a Regionalinitiative aimed at making Siemens Brazil an agile organizationwith an excellent working environment and at enabling the com-pany to better serve its customers, better fulfill its responsibilitiesto society and consistently outpace its competitors.

Michael Cheng

Chicago, USA

IMichael Cheng works at Siemens in the Chicago area. Heholds a degree in actuarial mathematics from the University of Michigan. After working for years as a pension con-sultant, applications specialist, tester and quality assurancemanager in the defined benefits industry, he joined Siemens

in . Michael successfully led a test center for six yearsbefore moving on to manage a team in systems engineering.

Devina Pasta

Munich, Germany

IAn electrical engineer, Devina Pasta joined SiemensIndia in , where she held positions in the area ofmotion control – first in product management, later in

business development. There, she launched a productfor the Asian market and created new business models.After driving business in Asia, she now works at

Corporate Strategies in Munich, managing aspects ofdigital transformation – such as a Siemens CEO commu-nity – in order to address the key opportunities arisingfrom digitalization. Devina has studied, worked andlived in Asia, America and Europe and thrives in interna-tional environments.

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Owners identify themselves with their Company

and thus give their best.

Joe Kaeser


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Strengthening our equity culture

A company owes its existence to the fact that its employeesidentify with it, trust it and commit themselves to itspositive development. We’re proud that around 140,000of our employees are today expressing these feelings

by owning Siemens shares. We intend to increase this

figure by at least 50%. Therefore, we want employees

below the management level to participate in theirCompany’s success on an annual basis. Because the moreour people trust their own Company, the more personalcommitment they will feel and the greater each individual’ssense of belonging and sense of responsibility will be.This is the culture we’re striving to create at Siemens –a culture that will be decisive for our Company’s long-term success.

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Energy application

Ready for take-off –Thanks to virtualplanning

In May , the word was “ready for take-off ” at Hamad International Airport in Doha. Each year, some million passengers arrive in or depart from

Qatar by air – a logistical challenge that also encompasses catering services.Every day, around , meals are loaded onto specially prepared trolleys that

convey them to the aircraft and have to be cleaned on return. The whole sys-

tem runs smoothly, thanks to sophisticated technology and logistics based onGerman engineering. Eisenmann SE – a global supplier of industrial systemsheadquartered in Böblingen, Germany – was commissioned to provide a fullyautomated electrified monorail system that enables the trolleys to be trans-ported within the airport’s huge logistics center. The engineers from southern

Germany relied on industry software from Siemens that allowed them to plan,

test and optimize the entire system in a virtual environment before it wasactually installed.

cartssimultaneously coordinatedand controlled


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, deliveriesa day

. kmTotal length of electrifiedmonorail system


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Energy application

Intelligent planning is the key Machine and system

suppliers such as Eisenmann SE are now faced with enor-

mous complexities as well as growing time and cost pres-

sures. The key to mastering these challenges is intelligent

planning and meticulous preparation from the very begin-

ning – with the help of innovative software. “Just a few

years ago, we would’ve had to send a team of engineers to

Qatar for on-site testing of the system in order to spot and

eliminate weaknesses in the software,” says Dr. Monika

Schneider, simulation expert at Eisenmann. Today, every-

thing is simpler: “Thanks to Siemens’ Tecnomatix Plant

Simulation software, we were able to test the entire system

right here in Böblingen – even though the airport itself was

still under construction.”


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It’s best to spot errors before they’re made Eisenmann

opted for Siemens’ Tecnomatix software solution, which

enables engineers to fully visualize, simulate and analyze a

system using a “digital twin” model. Potential faults or weak-

nesses can be detected early on and corrected before the

system is actually installed. For the Hamad International

Airport project, the engineers conducted a detailed analysis

of all the parameters for the electrified monorail system on

the computer before virtually simulating all its processes.

And the processes are numerous: carts move indepen-

dently along the .-kilometer electrified monorail system,

making around , deliveries every day. There’s no room

here for error.


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Energy application

Entering uncharted territory For the Hamad Inter-

national Airport project, engineers working at computers

in Böblingen, Germany, pushed fully loaded flight-service

carts onto waiting trolleys, transported them to the supply

station, unloaded them, cleaned them in the designated area

and then conveyed them to the appropriate terminals –

all in a virtual environment and up to , times a day.

“ The programmers had to foresee every scenario with the

potential to cause problems,” says Monika Schneider – for

example, when a trolley fails to reach its station or the stor-

age area for empty trolleys is too small. “ When we used the

real electrified monorail system for the first time, everything

worked just as we’d planned in the virtual world.”


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Errors cost hard cash “How does an increase in flight

operations affect catering? How can items of different sizes

be transported? What can be done to ensure that system

processes don’t interfere with one other? ” By answering

questions like these before a system goes into actual opera-

tion, Tecnomatix offers decisive advantages for mid-sized

Eisenmann. “Development times were shortened. There was

no need for tedious, labor-intensive on-site work, and we

were able to quantify our business risks, because the possibil-

ity of project delays could be completely eliminated,” explains

Monika Schneider. This approach will enable Eisenmann to

continue shortening its delivery times in the future – a key

competitive edge.


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Energy application

In a world full of questions, software provides the

answers In a globalized world, the question is always the

same: How can companies boost their productivity and flex-

ibility while cutting costs? Tecnomatix software adds a new

dimension to planning. Thanks to D simulations, users can

obtain a networked overview of a nearly limitless abundance

of variables that are nevertheless clearly visualized – even in

the case of large and complex systems. Scenarios and prob-

lems can be tested interactively: Does the system still run

smoothly when operating at full capacity? Where do bottle-

necks arise, and how can they be prevented? What’s more,

every euro invested in the Tecnomatix simulation solution

results in savings of up to euros by the time the system is

completed.

“Our software solutionsenable us to connectproductivity andefficiency across theentire product andproduction lifecycle –from product designto services.”

Magnus Edholm,Siemens software developer


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Integration as a success factor In the future, Eisen-

mann will standardize its various processes – everything

from sales to service – worldwide. For example, the cross-

border exchange of data within the company’s international

project teams will be significantly simplified. Product devel-

opers and system designers are now using Siemens software

solutions: Teamcenter (PLM) as a shared engineering data

platform and NX software (MCad), from which data can

be effortlessly transferred to Tecnomatix. Gerd Schneider,

Corporate Vice President at Eisenmann, sums it all up: “ This

integration is bringing our worldwide project teams even

closer together. So its advantages extend far beyond the

benefits of the individual software solutions.”

.Product design – Digitalplanning, designing andvalidating of products

.Production planning –Digital planning, simulat-ing and optimizing ofproduction and factoryautomation

.Production engineering –Integrated plant manage-ment throughout the entirelifecycle

.Production execution –Scalable data processinformation in real timecompany-wide

.Services – Customer serviceand support throughoutall steps of the value chain


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Energy application


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As the development and commissioning of the electri-fied monorail system for Hamad International Airportin Doha impressively demonstrates, industrial produc-tion is now inconceivable without integrated softwaresolutions. Thanks to industry software, product devel-opment is now digitalized and production systems and

processes are networked – making efficient, flexiblyreacting production environments possible. With ourcomprehensive offerings in the areas of automationtechnology, industrial switchgear, industrial drive sys-tems, industry software and services, we supply andsupport customers along the entire value chain – fromproduct design, production planning and engineeringto actual production and service.

The future of industry –Linking the virtual and real worldsNew competitors, global value chains and highly transparent markets are all

increasing competitive pressures. Industrial companies have to boost their pro-

ductivity – using innovative technologies that make production more cost-effective

and flexible while cutting time-to-market.

On the way to the Fourth Industrial RevolutionScenarios that sounded like science fiction just a few years ago are increasingly

becoming a reality. Machines are largely organizing themselves, supply chains

are automatically coordinating themselves, and products are supplying all theirproduction data to the machines on which they ’ll be manufactured. A new kind

of industrial production – sometimes referred to as the Fourth Industrial Revolu-

tion or Industry . – is now blazing its own trail.

Whether revolution or evolution, one thing is certain: the growing demands being

placed on industrial production and the introduction of new technologies have

ushered in irreversible change. And we’ll play a key role in shaping this change –

because we’re better equipped for the job than virtually any of our competitors.

As a world-leading provider of automation technology and industry software,

we not only boast decades of experience in industrial production; we’re also one

of Europe’s biggest software companies, with some , software engineers. We offer a complete portfolio of industry software, encompassing everything

from the automotive, shipping and aviation industries to the production of chem-

icals, pharmaceuticals and food. We’re shaping the future of industry – today.

Eisenmann is a leading international supplier

of systems and services for surface finishingand paint technologies, material flow auto-mation, thermal process engineering andenvironmental technology. Located in south-

ern Germany, the company’s been buildinghighly flexible, energy- and resource-efficientmanufacturing, assembly and logisticsfacilities for over years.

WWW.EISENMANN.COM

As the first company in the world to bundleall offerings for the digital factory under

one roof, we’re ideally positioned to reinforceand expand our leading role in turning thedigitalized company into reality.

WWW.SIEMENS.COM/

FUTURE-OF-MANUFACTURING

– Hamad International Airport is one ofthe world’s newest aviation hubs.

, – The design of the passenger terminalcomplex is inspired by the waves of theArabian Gulf. Planned to handle some million passengers a year, the building

includes over , square meters ofshops, cafés and restaurants.

– At the end of , Siemens trams

will begin operation in Qatar’s EducationCity, linking stations along . kilometersof track without any overhead contactlines – thanks to an innovative energy

storage system.

http://www.eisenmann.com/http://www.siemens.com/future-of-manufacturinghttp://www.siemens.com/future-of-manufacturinghttp://www.siemens.com/future-of-manufacturinghttp://www.siemens.com/future-of-manufacturinghttp://www.eisenmann.com/


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Power generation Power transmission, power distribution and smart grid Energy application Imaging and in-vitro diagnostics

Moving into the lead –In partnership withSiemens

Hospital operators around the world are faced with the challenge ofdelivering the best possible healthcare, based on state-of-the-art technol-ogy, at affordable prices. And Rush University Medical Center in Chicago,Illinois, is no exception. That’s why the facility’s management teamdecided ten years ago to embark on a major project that would make the

medical center one of the leading hospitals in the U.S. The ambitious plancalled for existing buildings to undergo extensive modernization, a newbuilding to be constructed and the entire campus to be equipped withleading-edge healthcare technology – while the complex remained in oper-

ation. The hospital’s project team was looking for a partner with worldwide

experience, outstanding technological competence and a proven trackrecord of implementing complex projects – and chose Siemens.


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Imaging and in-vitro diagnostics

Partnering as equals To provide the best possible con-

sulting services in the area of healthcare, you must have a

fundamental understanding of clinical workflow processes.

That’s why Bernard F. Peculis, Administrative Director at Rush

(pictured on the left), places his trust in Siemens. By consult-

ing with Jim Gurney, project head for Siemens (pictured on

the right), Peculis was able not only to clarify product-specific

questions but also to discuss the project as a whole. He

concurs with Peter Butler, President and Chief Operating

Officer of Rush, who says, “ I was very involved in the selec-

tion of Siemens. We knew a lot about their culture and their

impact on healthcare worldwide, and the depth and breadth

of what they could bring to our partnership. We felt there was

really a lot more intellectual capital than other vendors could

bring to the table.”


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A made-to-measure hospital The extensive modern-

ization and expansion of a hospital complex is an opportu-

nity that comes along at best once in a career – and the

opportunity was tackled with great determination at Rush

University Medical Center. Once the decision to implement

the project had been made, a team was formed to address

fundamental questions relating to the planned changes.

How can a building be designed to minimize the distances

walked by staff and patients? How can the highest standards

of hygiene be maintained? How can IT be embedded to

accelerate workflow? In the post- / era, the list of ques-

tions also included how to ensure the provision of basic

medical services for millions of city residents in the wake of

an event like a terrorist attack or an epidemic. These are only

some of the topics the project team considered and dis-

cussed with Siemens.


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Saving time can save lives When discussing ideas

for enhancing clinical workflow, the project team always

returned to the key priority: optimizing patient treatment and

outcomes. In the case of a medical emergency like a stroke,

patients need to obtain medical treatment as quickly as pos-

sible. Here, too, Siemens is a competent partner for Rush:

we’ve designed a consulting model that builds upon an

analysis of the processes used at some of the world’s leading

hospitals as well as the latest scientific insights into treating

stroke victims. Based on this model, numerous suggestions

for improvements were developed and implemented that

save time – and can thus save lives. As a result, clinicians at

many other hospitals in the U.S. now consider Rush Univer-

sity Medical Center a benchmark in stroke treatment.


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Revealing what’s hidden Rush University Medical

Center is aiming to set standards in healthcare imaging as

well. The intelligent networking of newly acquired imaging

systems was an important part of the hospital’s moderni-

zation. From computed tomography systems that generate

images faster and minimize radiation doses to magnetic

resonance imaging systems for neurological applications and

fluoroscopy systems that are used in connection with contrast

media, for example, to examine internal organs: Siemens

supplied the systems and adapted them to the facility’s

requirements. That’s one of the reasons why the medical

center chose Siemens, as the facility’s CEO Larry Goodman,

MD, confirms: “ When we pick a technology, we also pick the

company and the people. They’re the ones who are critical

to the smooth implementation of the new technology. Our

partnership with Siemens has been very successful.”


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Information is the key to success In healthcare, as in

many other areas, information technology now plays a vital

role. That’s why IT experts from Siemens helped Rush Uni-

versity Medical Center intelligently integrate its medical

systems and optimize the flow of information. Peter Butler

recalls, “ In , the last time we renovated the facility, I still

saw patients being rolled down the hall with X-rays on their

knees.” Those days are long gone. Working closely with the

building planners, Siemens defined all requirements early

on. The challenge was not only to install new systems and

get them up and running but also to integrate systems from

other manufacturers that were already in operation. And all

the systems had to be incorporated into the Medical Center ’s

IT system without a hitch. When the new hospital tower

opened its doors in January , everything worked per-

fectly. And Siemens employees at the facility are ensuring

that this will continue to be the case.


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Creating knowledge by sharing Comprehensive health-

care requires knowledge – or, in Dr. Goodman’s words, “ Train-

ing is incredibly important.” That’s why it was essential to

familiarize hospital personnel with the systems’ capabilities

as quickly as possible. To accomplish this, a training plan was

developed for every work group and every function – from

doctors and nursing staff to technicians. In addition, the train-

ing time for participants was significantly reduced by offering

online training to supplement classroom-based courses held

at the Siemens training center and on-site at Rush. Around

Rush employees have taken part in training sessions so

far, thus ensuring that all equipment is optimally utilized.

Dr. Goodman is thrilled with his employees’ learning curve

and commitment. “The key was that the entire team was

enthusiastic about the project and also willing to take the

extra time for training. I’m really proud of how the entire

organization got on board. We had the spirit and everyone

said, ‘We can do it!’”


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With the demand for healthcare continually increasingworldwide, solutions that offer better treatment atlower cost are needed. At Siemens, we’ve been workingfor years to improve medical care around the globe withour imaging and laboratory diagnostics systems andrelated IT solutions. We partner with hospital oper-

ators throughout the world – providing everything fromconsulting for the construction of new facilities to inno-vative healthcare technologies, intelligent softwaresolutions and staff training.

A hospital at its best“Our goal was for Rush University Medical Center to rank among the top ten percent

of the nation’s hospitals.” Formulated by CEO Larry Goodman, MD, this ambitious

aim was the basis for all planning. Together with the project team, Goodman set

out to make his university hospital in the heart of Chicago one of the country’smost advanced facilities – a hospital that sets standards for medical care as well

as for university research and education. The project called for modernizing older

sections of the complex, building a new hospital tower shaped around patients’

needs and fully integrating the entire healthcare infrastructure, including an

intelligent IT system. The acquisition of new medical technologies – particularly

in the field of imaging – was also part of the plan, and Rush formed a special

team for that task.

A trustworthy partner

To achieve all this, the hospital team was looking for a partner who could notonly deliver the technological solutions but also accompany the project with its

expertise and competence. And they chose Siemens. Company employees advised

the hospital management and the project team throughout all key phases of the

facility’s modernization. Siemens was also involved in the construction phase,

supplying building technology systems, for instance. In addition, the Company

equipped the hospital with numerous imaging systems, provided staff training

and developed a solution for ongoing services. For example, the facility’s com-

puted tomography (CT) systems, which are vitally important for emergency care,

are constantly monitored. Networked with the Siemens Guardian Program, the

systems are watched online by Siemens technicians around the clock. What’s the

advantage? Potential system errors can be corrected proactively and maintenance

can be planned at an early stage. And an analysis of the captured data can also

lead to suggestions for enhancing system-related processes – thus creating value

for the hospital.

Dr. Goodman and Peter Butler still have lots of plans for Rush. They intend to

continue developing the hospital on an ongoing basis: “Our foremost concern is

the patients and their optimal care. That’s why we want to become even better

and make Rush a leading healthcare center.” And in pursuing this vision, they ’ll

continue to rely on Siemens.

Rush is a not-for-profit healthcare, educa-tion and research enterprise headquarteredin Chicago, Illinois. Over , students areenrolled at Rush University in preparation

for careers in the medical field. With around beds, Rush University Medical Centeris one of the biggest hospitals in Chicago.With areas of specialization including neuro-

science, orthopedics, oncology and cardiol-ogy, the hospital has received many awardsin recent years. In particular, its outstandingnursing care and exceptional patient satis-

faction have made Rush one of the top-ratedhospitals in the United States.

WWW.RUSH.EDU

Together with customers and partners, we’reworking on improving healthcare throughoutthe world. We measure our progress in

three key areas. During fiscal , we sus-tained the positive trend of the previousyears, achieving or even exceeding the tar-gets we’d set for ourselves.

WWW.SIEMENS.COM/

HEALTHCARE-INDICATORS

– Peter Butler, President and Chief OperatingOfficer, Rush University Medical Center

– Exterior view of the new hospital tower

– Interior view of the entry pavilionwith circular skylights

– Larry Goodman, MD, Chief Executive

Officer, Rush University Medical Center

The statements described herein are based on results that were achieved in the customer’s u nique setting. Since there is no “typical”

hospital and many variables exist (e.g., hospital size, case mix, level of IT adoption), there can be no guarantee that other customerswill achieve the same results.

http://www.rush.edu/http://www.siemens.com/healthcare-indicatorshttp://www.siemens.com/healthcare-indicatorshttp://www.siemens.com/healthcare-indicatorshttp://www.siemens.com/healthcare-indicatorshttp://www.siemens.com/healthcare-indicatorshttp://www.rush.edu/


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Successful company management demandsmore than financial targets – it requiresa comprehensive strategic framework thatintegrates the key fields of corporate govern-ance: a strategy that sets the course.


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Setting the course

Our strategy


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Strategy sets the course

To leverage the diverse opportunities of our complex world,

a company needs a clear direction, a strong internal setup,

and people who follow the set course and turn plans and

ideas into reality. And that’s exactly what our strategy does:it includes a sharper customer and business focus, streamlinedgovernance and an integrated management model that

defines the concrete targets and measures required to closelyfollow the course we’ve set.

Our strategy


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To leverage the diverse opportunities

of our complex world, a company

needs a strategy to point the way forward and set clear priorities.

Joe Kaeser


Our strategy


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We’re focusing on our positioning along the value chain of electrification.This is where our core business lies. From power generation to powertransmission, power distribution and smart grid to the efficient applicationof electrical energy – in every one of these interrelated fields, electrification,automation and digitalization are the key business drivers. Our integratedsetup not only enables us to leverage opportunities in individual markets;it also allows us to exploit the potential at their interfaces. A worldwide

go-to-market setup and an organization geared toward shared customermarkets are making this possible.

Power generation

The field of efficient power generation – encompassing conventionaland renewable energy sources as well as comprehensive services – isaddressed by our Power and Gas Division, Wind Power and RenewablesDivision and Power Generation Services Division.

Power transmission, power distributionand smart grid

Solutions and products for power transmission and distribution as

well as technologies for smart grids are all bundled at our Energy Management Division.

Energy application

Our Building Technologies Division, Mobility Division, Digital FactoryDivision and Process Industries and Drives Division are delivering

technologies for the efficient application of energy in building technol-ogy, transportation and industry.


Siemens Healthcare is responsible for our medical imaging and in-vitrodiagnostics businesses.

Financial Services

In all areas related to project financing, Financial Services is a reliablepartner to our customers.

Our strategy


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E l ec t r i fi c a t i o n

A u t o m a t i o n

D i g i t a l i z a t i o n

Expected market growth

Power generation

Power trans mission, power dist ribution and smart grid

Energy application


2–3%

4–6%

7–9%

– FinancialServices

– Power and Gas– Wind Power

and Renewables

– Power GenerationServices

– EnergyManagement

– Healthcare– BuildingTechnologies

– Mobility

– Digital Factory– Process Industries and Drives


Our strategy


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Flexible and small gas turbines

In the area of power generation, the trend is increasingly toward decen-tralized energy supply. Customers worldwide are relying more and moreon individualized energy supplies and demanding tailor-made solutions.

As a result, we see major growth potential in the field of flexible and smallgas turbines – potential that we intend to rigorously exploit.

Offshore wind power

Among renewable sources of energy, wind power will play a key role overthe long term. Offshore wind turbines deliver high yields and are subjectto less fluctuation than other renewables. We want to continue building

on the leading position in offshore wind power that we’ve captured inrecent years. We consider double-digit market growth realistic in this fieldin the medium term.

Distribution grid automation and software

Energy management is becoming increasingly vital – for distribution grids as well as industrial and private energy producers and consumers. Energy management

systems make it possible to integrate increasingly decentralized power suppliesinto the energy cycle, while mitigating the negative impact of the fluctuations

that occur when power is generated from renewable sources – thus improvingthe utilization of existing power grids. Our intelligent, integrated automationsolutions offer customers decisive added value.

Urban and interurban mobility

In greater demand than ever before, intelligent mobility solutions areproviding major impulses for growth – particularly in the areas of urbantransportation and automated traffic-control solutions. We see strongergrowth potential in this area as well.

Customer and business focus also includes setting clear priorities forresource allocation in the future. We’ll utilize the power of our employees,our technological expertise and our capital in a more targeted manner

in the areas where they’ll create maximum value for Siemens. Positioningour Company rigorously along the value chain of electrification and allocat-ing resources in a targeted manner will enable us to access the fieldsthat promise to provide us with long-term profitable growth. On this doublepage, we present selected growth fields.

Our strategy


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Digital-twin software

The virtual and real worlds are merging more and more. Already today,our software solutions are helping customers develop products much

faster, more flexibly and more efficiently. For example, they can nowperform endurance tests even before a single bolt is tightened in the real world. Not only products but also the plants in which they’re producedhave digital twins that can be used to coordinate and integrate productdesign and production planning. The digital models are always up-to-date – as planned, as built, as maintained – while allowing improvementsthroughout entire lifecycles.

Key sectors in process industries

Some industry sectors – oil & gas and food & beverage, for example –are growing at above-average rates. We want to participate in thisgrowth. That’s why we’re bundling our expertise in process industriesand drive technologies and continuing to expand our related portfolioof products and software solutions.

Image-guided therapy and molecular diagnostics

The increasing use of molecular biological methods and progress in

the life sciences are accelerating technological change in healthcare.To improve quality and efficiency, societies worldwide are also demand-ing new solutions for next-generation healthcare. Against this backdrop,fundamental changes are emerging – changes to which we’re optimallygearing our Healthcare business.

Business analytics and data-driven services,

software and IT solutions

We have a comprehensive understanding of our customers’ businessprocesses. In the future, we want to leverage this knowledge even betterby analyzing the data generated in these processes, providing recommen-

dations for improvement and action, and thus creating value. The result-ing competitive advantages for our customers are increasingly derivedfrom cloud-based solutions and services powered by data analyticssoftware. A clear example is our cross-unit remote service, which we’recontinuously expanding.

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Governance

We want to lead Siemens in such a way that we focus on our customers atall times and further expand our market penetration while maintaining lean

and flexible structures. That’s why we’ve selected a market-integrativesetup that combines a common regional organization with a coordinatedvertical approach. Against this backdrop, we’ve retailored the structuresand responsibilities of our businesses, our Regions and our corporate

governance functions. Concretely, this means:

Stringent governance also means making sure that our proven method-ologies for continuously improving performance are rigorously appliedCompany-wide in our businesses and projects in the future. In this con-

nection, we’re relying on our well-established top+

program. We’re alsomanaging our compliance system and Company-wide compliance organi-zation directly from Company headquarters to ensure that our activitiesalways fully comply with applicable laws and with our own internal principlesand regulations.

We’ve removed layers from our Company, thus bringing our businesses closer tocustomers and key markets. We replaced our 14 Regional Clusters with 30 LeadCountries. These Countries, which generate more than 85% of our business,now report directly to our Managing Board.

We’ve also eliminated the Sector level and consolidated our business activitiesinto nine Divisions and one separately managed unit, Healthcare. This change,too, is increasing our customer proximity and accelerating our decision-making.

In addition, we’ve made governance even more stringent across all levels ofour organization. Our Managing Board leads the Company and maintains thebalance between our businesses and Regions. It’s supported by strong, efficientcorporate governance functions, our Corporate Core. This Corporate Coreensures fast, unbureaucratic decision-making across key Company functions.

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C us to m er s an d m a rk et s

R eg io nsB u si ne ss es

M an a gi ng B o ar d

Governance

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Management model

A strategy sets the course. In the end, however, it’s implementation andresults that count. To enable us to manage our Company more effectively,we’ve expanded One Siemens into an integrated management modelthat combines under one roof the overarching targets and priorities withwhich we’re implementing our strategy throughout the Company.

These factors are making a decisive contribution to our Company’s success –managed jointly and holistically, not individually or in isolation. That’s how

One Siemens is helping us to reach our Vision 2020 goals.

Financial frameworkTo measure and compare our development vis-à-vis the market and in ourcompetitive environment, we use a system of defined key indicators. We’venow refined and expanded this financial target system.

SEE PAGE

Operating system and Corporate Memory

We manage our Company in accordance with specific, clearly defined prior-ities. And we do it rigorously. In addition, the Corporate Memory – ourknowledge management – ensures that we learn from mistakes and keep

our work focused on success.SEE PAGE

Sustainability and citizenship

We contribute to sustainable development by maintaining a responsiblebalance at the Company level between profit, planet and people.

SEE PAGE

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O n e S i em en s M a n a g e m e n t m o d e l

1. F i n a n c ia l f r a m e w o r k

2. O p er a t i n g s y s te m a n d C o r p o r a t e M e m o r y

3. S u st a i n a b i l it y a n d c it i z e n s h ip

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We’ve set out to increase our Company’s value on a sustainable basis.To measure our progress, we use a balanced system of defined financialperformance indicators. We’ve further refined the range of the OneSiemens indicators we’ve reported to date:

1. Financial framework

Growth

Our aim is to outpace the average growth rate of our most relevantcompetitors.

Capital efficiency

We’ve set ourselves an ambitious target corridor of 15% to 20% forsustainable return on capital employed.

Total cost productivity

We want to continuously optimize our costs and achieve total costproductivity gains of 3% to 5% a year.

Capital structure

We’ve set ourselves a goal for our capital structure that will enable usto maintain our very solid and efficient financial basis.

Dividend payout ratio

We want to achieve an attractive payout ratio of 40% to 60% of netincome.

Profit margin ranges of businessesAt the level of our businesses, we’ve defined individual margin rangesbased on the profitability of the most relevant competitors of eachbusiness.

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Gr ow th

P r o fi t m a r g i n r a n g es o f b u s i n e s s e s

C a pi ta l e ffi c ie n c y

C a pi ta l s tr u ct ur e

Tota l cos t prod ucti v ity

Div idend payo ut ra tio

O n e S i em en s M an a g e m e n t m o d e l

1. F i n a n c ia l f r a m ew o r k

One Siemens

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2. Operating system and Corporate Memory

Doing the right things right – that’s what a strategy’s implementationdepends on. To manage a company effectively, efficiently and thussuccessfully, you’ve got to set clear priorities, have the right tools andbase

Documents

siemens_ar2014.pdf